Pittsburgh Public Schools could be facing more financial distress with school leaders expecting the district to be facing a $12 million deficit in its budget next year.
District leaders said Monday night during a finance meeting that Pittsburgh Public Schools is expecting to be facing a $12.2 million deficit, a figure much lower than they were originally anticipating.
Leaders are now tossing around ideas to help fix finances within the district.
Their proposal would include a 4% tax hike, assuming that Pittsburgh Public Schools will move forward with their school closure plan that was introduced by Superintendent Dr. Wayne Walters last week.
That proposed plan could permanently close nine school buildings and create a feeder pattern to combine students at other buildings.
Even with improved projections, the budget still does not meet the board’s required 5% fund balance policy.
Officials warn that by 2028, the deficit could grow significantly.
District leaders also say they’re feeling the impact of ongoing property tax appeals and the state budget impasse.
To date, Pittsburgh Public Schools has not received $95 million in state funding. The district could struggle to meet payroll as early as January if a state budget isn’t passed by the end of November.
A special budget hearing is scheduled for December 8 with a final vote on the budget expected on December 17.
More from CBS News